Pets at Home trims full year profit guidance after softer trading in accessories
Pets at Home has seen its third-quarter consumer revenue increase by 6% compared to last year and by 15.4% on a two-year basis.
In the 12 weeks to 4 January, retail revenue was up 3.5% with like-for-like sales rising by 3.7%. However, this was below the retailer’s expectations after it experienced softer trading in discretionary accessory items.
The group continued to see a strong performance across its vet business where revenue was up 13.4% and like-for-like sales rose by 13.3%. This followed sustained growth in average spend driven by a blend of price and a shift to more advanced procedures.
The figures meant that group revenue increased by 4.3% in the period to £362.4 million as group like-for-like sales edged up 4.4%.
Lyssa McGowan, chief executive of Pets at Home, said: “Our colleagues came together over our peak trading period to deliver a record sales performance, growing against a very strong performance in the prior year.
“While a slower market over peak meant our sales growth didn’t quite hit the levels we expected, the business remains well positioned to benefit from long-term growth in the sector as we continue to win share and grow volumes across food and deliver differentiated performance through our unique vets business.”
As result of the underperformance in its retail business, Pets at Home now expects its full year group underlying pre-tax profit to come in at around £132 million compared to a previous target of around £136 million. Expectations for its vet business remain unchanged.
Looking ahead, McGowan said: “Importantly, we will shortly follow up launching our new distribution centre with the launch of our new digital platform, in line with our target.
“Our new digital platform is a key foundation of our growth strategy, bringing vastly improved user experience to our consumers, and creating opportunities to improve cross-sell into accessories and further grow share of wallet. With these foundations now in place we are well positioned for the future.”